4 Reasons Employers Should Consider Offering HSAs to Employees
If you’ve opted to provide your employees with a group healthcare plan, you’ve taken an important step toward protecting them and providing a benefit they surely value. But not all healthcare plans are created the same. Your employees might appreciate a policy with lower monthly premiums, but that will also mean that they’re subject to a higher deductible. And that can mean high, unexpected out-of-pocket costs.
One way you can help your employees manage these expenses, at no additional cost to you, is by sponsoring health savings plans (HSAs). This type of account allows your employees to divert money from their paychecks to be used for healthcare expenses, on a before-tax basis. They’ll certainly appreciate the tax savings! Plus, other benefits include…
HSAs are portable. Unused funds roll over each year, so no one ever faces losing their money. In fact, you can even take an HSA into retirement, and use it for medical expenses at that time! HSAs are also portable when changing employers, so employees feel secure about saving money this way.
HSAs lower taxable income. Because contributions to the account are made before taxes are taken, your employees will essentially be using non-taxed money to pay their medical expenses. Plus, their taxable income will be lowered a bit, resulting in potential savings.
HSA contribution limits are generous. in 2023, the contribution limit for individuals is $3,850, and for those with family healthcare coverage it is $7,750. Your employees can save this much for their medical bills, but also potentially lower their taxable income by those amounts.
You can make matching contributions to an HSA. As an employer, you are not required to contribute to a health savings account, but if you want to add this as a benefit, you certainly can! A benefit like matching HSA contributions could help you retain loyal workers and attract new ones.
For more information on health savings accounts, give us a call. We will explain how this potentially valuable benefit works, and help you decide if an HSA plan would fit into your benefits package.